§ 1802 Foreign Bank Deposit Insurance

This law says that a bank from another country can only open a retail branch in California if the deposits at that branch are protected by the federal deposit insurance program.

Key Takeaways

•Foreign banks can open retail branches in California only if FDIC insurance is provided.
•The insurance must meet the requirements of the Federal Deposit Insurance Act.
•Without FDIC coverage, the branch cannot be licensed to operate.

Example

A bank based in Canada wants to open a branch in a California shopping mall to serve local customers.

The Canadian bank must arrange for the deposits at that California branch to be covered by the FDIC, just like U.S. banks, before it can get a license to operate there.

No foreign (other nation) bank shall be licensed to maintain a retail branch office unless the deposits in such office are insured by the Federal Deposit Insurance Corporation in accordance with the provisions of the Federal Deposit Insurance Act. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

This law says that a bank from another country can only open a retail branch in California if the deposits at that branch are protected by the federal deposit insurance program.

Key Takeaways

•Foreign banks can open retail branches in California only if FDIC insurance is provided.
•The insurance must meet the requirements of the Federal Deposit Insurance Act.
•Without FDIC coverage, the branch cannot be licensed to operate.

Example

A bank based in Canada wants to open a branch in a California shopping mall to serve local customers.

The Canadian bank must arrange for the deposits at that California branch to be covered by the FDIC, just like U.S. banks, before it can get a license to operate there.

Key Takeaways

Example

Key Terms

References

§ 1802 Foreign Bank Deposit Insurance

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References